HELP ME PLEASE. Anson borrows some money from a bank at a rate of 10% simple interest for 1 year. Jenny borrows $1000 more then Anson from another bank at 8% simple interest for 6 months
If the total interest paid by Anson and Jenny is $740, What is the amount of money Anson borrowed?
The formula for simple interest is I=prt. Anson gets 10% interest; 10% = 10/100 = 0.1. This gives us I=p(0.1)(1) = 0.1p.
Jenny borrows 1000 more than Anson, so her principal is p+1000. Her rate is 8%; 8%=8/100 = 0.08. She invests it for half of a year, or 0.5. Together this gives us: I=(p+1000)(0.08)(0.5) = (p+1000)(0.04) = p*0.04 + 1000*0.04 = 0.04p + 40
Together they earned 740: 0.1p+0.04p+40 = 740
Combine like terms: 0.14p+40 = 740
Subtract 40 from both sides: 0.14p+40-40 = 740-40 0.14p = 700
Divide both sides by 0.14: 0.14p/0.14 = 700/0.14 p = 5000
